Suburban Office Space In Short Supply for Baldwin County
I recently attended a commercial real estate conference held in Birmingham, Alabama, where over 500 commercial brokers, developers, lenders, politicians, and business leaders gathered to learn of current trends in commercial real estate, as well as to gain a better understanding of how certain factors have and will continue to shape the future of Alabama. Prevalent themes centered on the rapid growth of the Gulf South region and the evolution of our industry—with progressive growth and opportunities on the horizon for the South Alabama market, notably, changes in the office market space.
Baldwin County continues to be the fastest growing county in Alabama with 49% population growth since 2000. The University of Alabama’s Center for Business and Economic Research (CBER), projects that the Daphne-Fairhope-Foley metro population will increase 43.6% over the next 20 years, and is anticipated to become the 4th largest MSA in the state by 2040. The recent arrival of the Walmart distribution center and Amazon fulfillment center, combined with the expected growth of companies such as Airbus and Austal, the continued success of the Port of Mobile, and the addition of the new bridge over Mobile Bay all point towards a bright future for the South Alabama region.
But as the population continues to increase throughout Baldwin County and new businesses are attracted to the region, the nonexistence of Class A office space outside of Mobile’s CBD is evident. The product simply doesn’t exist. The lack of available inventory can indeed be frustrating—not only to national commercial brokers seeking office space options for clients but to local economic developers tasked with recruiting industry and commerce to the area.
According to Lee Lawson, President and CEO of Baldwin County Economic Development Alliance, “The lack of available professional office product in Baldwin County is a critical difference maker in converting economic development opportunities to successes. We continue to work with our partners both private and public to create the environment where economic development opportunity conversions can happen successfully. In the white-collar office arena, existing space in the marketplace creates a higher conversion opportunity ratio for new high-paying jobs in our community.”
Even more challenging would be to locate a Class A office building that meets the preferences of today’s changing workforce. There are certainly niche markets, such as Downtown Fairhope, that are starting to support a higher-end office product but on a smaller scale. Other options for office space along the Eastern Shore of Mobile Bay, including Spanish Fort, Daphne, Fairhope, and Point Clear are primarily made up of smaller, older buildings, some of which are becoming antiquated. Office space needs for those users not willing to commute to broader markets such as Mobile or Pensacola are often met by converting retail space to office use or working from a home office.
On pace with national trends, office building features are evolving, with an emphasis on more open space for collaboration and shared-office facilities in high-tech buildings. Suburban locations with urban-type amenities are highly favored among the substantial millennial demographic shift and will create even more demand in the next few years as the age group continues to mature. Another popular suburban office trend is the mixed-use, live-work-play development model with walkability to nearby restaurants, retailers, and residential services.
To expound upon the shifting trends of suburban office space and the lack of Class A inventory in the area, Stirling Properties has recognized a significant need to provide for quality office space. We are currently underway on pre-leasing efforts for The Offices at Spanish Fort Town Center, a proposed 2-story, 44,000-square-foot, Class A office building strategically positioned along the I-10 corridor in Spanish Fort. This future development is in the bullseye of major growth in the county and provides convenient access to both Mobile and Pensacola. Not only will this new office building help to attract corporate and professional users to the area, but the new construction and design also allow the incorporation of the emerging styles that will change the way office space is utilized.
The Offices at Spanish Fort Town Center will include state-of-the-art construction such as efficient floor configurations, allowing tenants the ability to design space to incorporate innovative ways to potentially reduce square footage required, therefore, reducing rental expenses. Other features include flex space to encourage and promote collaboration among employees; flexibility in hours of operation, as the trend for 24/7 “shift” use evolves; and ample, free surface parking, resulting in significant cost savings when compared to paid parking typically associated with CBDs. It will also benefit from high interstate visibility and signage opportunities.
The office building is within walking distance of numerous on-site amenities associated with Spanish Fort Town Center, a mixed-use development consisting of retail, restaurants, and residential facilities. An on-site Container Park is also planned for 2018, with exciting new restaurant vendors.
Our region is quickly emerging as a top destination for business and corporate growth and relocation. Baldwin County has been named #1 in the state of Alabama for incoming business investment for the 2nd year in a row, and #1 in the state for Workforce Talent Attraction. If we are going to compete with other top markets—and win—we must be able to provide quality office space in our suburban markets.
Stirling Properties is excited to embrace and support the growth of Baldwin County and our region. With offices spanning the Gulf South, our team is well-equipped to recognize and execute strategic commercial real estate opportunities—from Louisiana to the Florida Panhandle.
For additional information, please contact me at 251.375-2496 or jbarnes@stirlingprop.com.
Stirling Properties Is Pre-Leasing Offices At Spanish Fort Town Center
Stirling Properties commercial real estate company is pre-leasing Offices at Spanish Fort Town Center, a proposed Class-A office building to be located within the Spanish Fort Town Center mixed-use development in Spanish Fort, Alabama. The offices will be situated along Bass Pro Drive on the east side of the center.
The proposed Offices at Spanish Fort Town Center includes the construction of a 2-story office building consisting of roughly 44,000 square feet. The building will feature state-of-the-art construction, efficient floor configurations, and ample surface parking. Adjacent land is available for additional office development phases to meet expansion requirements and demand.
Stirling Properties currently handles leasing for Spanish Fort Town Center. The proposed office development would be owned and managed by the company. Since opening its Mobile office in 2014, Stirling Properties remains committed to expanding its footprint in South Alabama and the surrounding region.
“The Offices at Spanish Fort Town Center will be a great addition to the area. It will be located within walking distance of abundant amenities that already exist as part of the overall Spanish Fort Town Center mixed-use development. This is a great example of the live, work, play development model that is becoming attractive to many companies and employees,” said Jeff Barnes, CCIM, Broker with Stirling Properties.
Spanish Fort Town Center, anchored by Bass Pro Shops, Kohl’s, JCPenney, Urban Air, Fairfield Inn, and Courtyard by Marriot, is a 230-acre premier master-planned development located at the intersection of Interstate 10 and U.S. Highway 98 in Baldwin County. The center includes 450,000 square feet of retail and restaurant space, an apartment community, hotels, banks, and entertainment options.
Stirling Properties has a diverse portfolio of retail, office, mixed-use, healthcare, and hospitality developments and managed properties across the Gulf South region. The company recently developed a similar office product—Offices at River Chase—in the River Chase mixed-use center located in Covington, Louisiana.
For Offices at Spanish Fort Town Center leasing information, contact Jeff Barnes, CCIM, at (251) 375-2496 / jbarnes@stirlingprop.com or Angie McArthur at (251) 375-2481 / amcarthur@stirlingprop.com.
Stirling Properties is located at One St. Louis Centre, 1 St. Louis Street, Suite 4100 in Mobile, Alabama.
DXC Technology Signs Lease For Office Space In New Orleans
Stirling Properties Brokers Deal At 1615 Poydras Street
Stirling Properties was recently part of the brokerage team that landed DXC Technology in its new office location in New Orleans, Louisiana. DXC Technology has reached a lease agreement for multiple floors of the Freeport McMoRan Building located at 1615 Poydras Street, across from the Mercedes-Benz Superdome in the city’s Central Business District. Gaines Seaman, Stirling Properties’ Sales & Leasing Executive, represented the building owner in the transaction.
DXC Technology will initially occupy two floors of the building and is expected to begin operations in January of 2018. The company has future options to lease up to 10 floors representing a total of 178,000 square feet of commercial space. Freeport McMoRan Inc. will continue to maintain a major presence in the building and in New Orleans, according to a release issued by Louisiana Economic Development (LED).
The Freeport McMoRan Building will house the permanent operations for DXC Technology’s new Digital Transformation Center in New Orleans, where the company will eventually employ 2,000 professionals in one of the largest economic development deals in the history of Louisiana.
The announcement that DXC Technology had selected New Orleans to establish its Digital Transformation Center was regionally celebrated back in November. This economic development win further solidifies the emergence of New Orleans as one of the top cities for young professionals to live and work, and reinforces the momentum of our area as a major technology hub. Stirling Properties is proud to have been a part of this historic accomplishment for our region.
#StirlingProud
2017 Office Market Survey: Mobile CBD & West Mobile, AL
Stirling Properties is pleased to present the 2017 year-end Mobile Office Market Survey. This report, compiled by Jack Conger and Jill Meeks, Sales & Leasing Executives in our Mobile office, is intended to track average rental rates, occupancy rates, and average absorption rates for West Mobile and the downtown Central Business District (CBD) on office buildings greater than 20,000 square feet. It was created to be a resource for agents, as well as tenants, landlords, developers, lenders, fellow brokers and anyone else looking for information about the Mobile office market.
All information provided in this report would not be possible without the cooperation of our staff and colleagues and we would like to thank all of those who contributed.
Here’s an excerpt from the Mobile Office Market Survey:
The last two quarters of 2017 saw an increase in investment activity in the area with many notable transactions, redevelopments and sales.
In leasing news, Armbrecht Jackson, LLP has subleased a portion of the Regions Bank space at RSA Battle House Tower and will be vacating the top two floors of Riverview Plaza. The CBD occupancy rates had a slight increase from 68.3% to 70.2%, average rental rate of $17.28, and an absorption rate of .25%.
There were also many exciting economic announcements for Mobile, such as the partnership of Airbus and Bombardier that could bring a second aircraft assembly line to the market, and the decision of steelmaker SSAB Americas to move the headquarters of its American division from Chicago to Mobile. Rest assured, there are more to follow in the coming months and years!
Please click here to view and download the PDF of the Mobile Office Market Survey.
Major Economic Win for the Greater New Orleans Region
DXC Technology to create 2,000 high-paying jobs.
The greater New Orleans region is celebrating a monumental economic win with the announcement that DXC Technology will establish a Digital Transformation Center in New Orleans’s Central Business District. (The site location will be finalized and announced soon.) The new Digital Transformation Center is expected to create 2,000 permanent high-paying jobs over the next seven years, and an annual payroll exceeding $133 million by 2025. This marks one of the largest economic development deals in the history of Louisiana.
DXC Technology is a new business venture resulting from the merger of Computer Sciences Corp (CSC) and the Enterprise Services business of Hewlett Packard Enterprise (HPE)—and is a global leader in IT services.
This deal has been in the works for a very long time, and yesterday, New Orleans Mayor Landrieu, along with many government and community officials, economic development organizations, and higher education leaders brought the project to fruition. The Digital Transformation Center was heavily competed for but New Orleans emerged as the front-runner on a short list of great cities across the country.
As New Orleans approaches its 300th anniversary, this is truly a significant milestone for the city. This economic development win is yet another testament to the emergence of New Orleans as one of the top cities for young professionals to work, and reinforces the momentum of our area as a major technology hub.
This is an exciting time for New Orleans. We have celebrated many economic successes and accomplishments over the last several years, and this is just the beginning. Stirling Properties is proud to be a part of this thriving region!
Learn more about the announcement from LED (Louisiana Economic Development).
Sale of 220 West Garden Office Tower in Pensacola, Florida
Stirling Properties will resume management & leasing of the property
Rendering of proposed exterior renovations of 220 West Garden
Stirling Properties commercial real estate company is pleased to announce the closing on the sale of 220 West Garden (former SunTrust Tower) in Pensacola, Florida. The 95,329-square-foot, 10-story office tower was purchased by Civic Conversations, LLC, which is part of the Studer Family of Companies.
Jason Scott, Sales & Leasing Executive with Stirling Properties, worked on behalf of the seller on the property transaction. Stirling Properties will also resume the management and leasing assignments of the property. Exciting new renovations for the building are expected to commence in November of this year, with completion anticipated for the fourth quarter of 2018.
“We are glad that one of Pensacola’s most iconic buildings is going to continue to serve the Pensacola community in a fresh, new way,” said Scott. “We are equally excited at the opportunity to work with Studer Properties, LLP and its team to provide them with quality management and leasing services that complement Studer’s core mission for improving the quality of life.”
Studer’s plans for the property include a significant capital investment with the goal of turning it into a place for community discussions and dialogue, to host expert speakers on issues important to Pensacola, and create an open public space for citizens to meet and enjoy downtown, and a best-in-class event center.
While most of the building will remain a multi-tenant office tower, the renovation plans include converting the 17,000-square-foot ground floor into a community interaction area with café, lecture space, and an environment for other community gatherings. The existing exterior open space will become an urban plaza for musical events, outdoor movies, and other seasonal activities. The building’s ninth floor will include an observation room for visitors.
Rendering of proposed interior renovations of 220 West Garden
“Our goal has always been to improve the quality of life for people in Northwest Florida. Through our commercial ventures, we hope to help our community and our local businesses be more productive and profitable, which translates to more jobs and a better trained workforce,” said Quint Studer.
“Stirling Properties is proud to retain 220 West Garden as part of our commercial portfolio in the Pensacola region. We look forward to working with the Studers and their organization in its core mission to make Pensacola the best place to live and work,” said Will Barrois, VP & Regional Manager for AL/FL with Stirling Properties.
Stirling Properties is located at 220 West Garden Street, Suite 802 in Pensacola, Florida. Click here for more information regarding our services.
